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Top 10 Stocks Under $20 to Buy Heading into July

Benjamin Rains

At Zacks, we try to avoid labeling stocks as “cheap” or “expensive.” Instead, we opt to look beyond a stock’s face value, and our system puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.

With that said, low-priced stocks can still be attractive to investors as they present the chance to take a larger position in a company. When searching for these low-priced stocks, we still look for similar trends in growth, value, and momentum. Then we apply the Zacks Rank to properly analyze the potential that these companies have.

Today we’ve highlighted 10 stocks that are currently trading for under $20 per share. All of these stocks sport a Zacks Rank #2 (Buy) or better at the moment, along with a variety of other positive factors that help these companies stand out.

Snap Inc. SNAP

Prior Close: $14.71 USD

Shares of SNAP have skyrocketed 166% in 2019 to crush its industry’s 19% average. The social media firm failed to impress investors after its highly anticipated IPO in 2017. With that said, Snapchat’s parent company is poised to see both its top and bottom lines climb in a big way over the next serval years. Our current Zacks Consensus Estimates call for its fiscal 2019 revenue to jump 35% to $1.59 billion, which is projected to lift adjusted earnings by 36%. SNAP is then expected to see its 2020 revenue jump 32.6% above our current-year estimate to reach $2.11 billion. Meanwhile, the firm’s earnings are projected to surge over 65%. In the end, adding #2 (Buy)-ranked Snap right now as a home run play that sits well below its all-time highs could be a solid idea, especially as Facebook FB faces increased government scrutiny.

iQIYI, Inc. Sponsored ADR IQ

Prior Close: $18.18 USD

iQIYI is a leading online entertainment service firm in China announced on June 24 that it surpassed 100 million subscribing members. The firm that helped pioneer the video streaming platform in the world’s second largest economy and has been called, of course, the Netflix NFLX of China saw its stock price soar 11% through mid-day trading Thursday to inch just over $20 a share. iQIYI, which has an average trading volume of roughly 9 million, is projected to see its adjusted current full-year earnings jump 44% on 24.3% revenue growth. The company’s 2020 EPS figure is expected to surge 50% above our 2019 estimate to reach a loss of -$0.70 per share. Meanwhile, iQIYI’s 2020 revenue is projected to come in 27% higher than our 2019 estimate to help make its case for a potential growth pick. iQIYI is a Zacks Rank #2 (Buy) at the moment.

Toray Industries Inc. TRYIY

Prior Close: $15.26 USD

Toray is a manufacturer, processor, and seller of textiles, fibers, performance chemicals and composites. TRYIY stock is up 14% in the past month and is currently a Zacks Rank #2 (Buy) that rocks an “A” grade for Value in our Style Scores system. The company’s adjusted fiscal-year earnings are projected to jump 19% on nearly 5% revenue growth that would see it hit $22.23 billion. Toray is also a dividend payer, with an industry-matching 0.58 price/sales ratio.

General Electric Company GE

Prior Close: $10.27 USD

General Electric stock has climbed over 37% in 2019 to outpace its industry’s 21% average climb. This includes an 11% pop in the last month on the back of some positive aviation-business related news. In fact, GE Aviation set a record for orders at the Paris Air show this June, with $55 billion in jet engines, services, avionics, and digital offerings. GE’s aviation division makes up about 30% of the company’s revenue at the moment. The conglomerate has also seen its longer-term earnings estimate revision picture trend completely upward recently to help GE earn a Zacks Rank #1 (Strong Buy) at the moment. On top of that, General Electric’s 0.74 price/sales ratio marks a significant discount against its industry’s 1.37 average.

Ford Motor Company F

Prior Close: $9.91 USD

Ford is a Zacks Rank #2 (Buy) that claims an “A” for Value and a “B” for Momentum at the moment. F stock has climbed 34% in 2019 to crush its industry’s 6% average. The historic auto giant is set to launch 40 electric offerings by 2022 in order to compete with the likes of Tesla TSLA. Ford is also set to dive into the autonomous vehicle space. Ford’s current-quarter earnings are projected to surge by 22.2%, with the following quarter projected to jump 14% above the year-ago period. Plus, the company is coming off a 70% positive earnings beat last quarter. Ford is also a dividend payer with a massive yield of 6.05%.

Vipshop Holdings Limited VIPS

Prior Close: $8.31 USD

The Guangzhou, China-based online discount retailer sells popular branded products, from the likes of Nike and more regional-specific companies, throughout China. Vipshop’s lifted its total active customer base by 14% during its first-quarter of fiscal 2019. Looking ahead, the company’s full-year 2019 EPS figure is projected to surge 31% to reach $0.76 per share on the back of 3% revenue expansion. Peeking further ahead, VIPS’ adjusted 2020 earnings are projected to climb roughly 32% higher than our current year estimate on 7% greater revenues. VISP is a Zacks Rank #2 (Buy) right now that rocks a “B” grade for Value. Plus, Vipshop stock has soared 56% in 2019.

Asure Software Inc ASUR

Prior Close: $7.49 USD

Asure is a cloud computing firm that offers its business clients the chance to modernize everything from human capital management and time & attendance solutions to payroll and taxes. ASUR holds a Zacks Rank #1 (Strong Buy) at the moment, along with an “A” grade for Growth and a “B” for Value. ASUR shares are up 50% halfway through the year. The Austin, Texas-based firm’s full-year revenue is projected to climb 18.1% to reach $105.1 million. Meanwhile, its adjusted fiscal 2019 earnings are projected to pop 5.5% to hit $0.58 per share, with 2020’s EPS figure expected to climb 23% above our 2019 estimate.

Fly Leasing Limited FLY

Prior Close: $17.11 USD

FLY leases aircraft to airlines around the world, as its name might suggest. The firm ended last quarter with 103 aircraft and seven engines in its portfolio, split relatively evenly between Boeing BA and Airbus SE EADSY. Shares of FLY have flown 64% higher in 2019. The Dublin, Ireland-based company’s adjusted fiscal 2019 earnings are projected to soar 36.5% from the year-ago period to reach $3.93 per share, on 16.3% revenue expansion. FLY’s positive longer-term earnings estimate revision activity helps it earn a Zack Rank #1 (Strong Buy). Plus, the firm’s forward P/E of 4.4 rests well below its industry’s 9.2 average.

Host Hotels & Resorts, Inc. HST

Prior Close: $17.62 USD

Host Hotels & Resorts is one of the largest lodging-based real estate investment trusts in the world and owns upscale and luxury hotels from Miami to Honolulu. HST’s fiscal 2019 and 2020 earnings estimates have climbed recently to help it earn a Zacks Rank #2 (Buy). On top of that, Host Hotels is trading at 9.8X forward earnings estimates, which is far below its industry’s average of 14.8X. Host Hotels & Resorts, which earns a “B” grade for Value, is also a dividend payer with a strong 4.5% yield.

Hertz Global Holdings, Inc. HTZ

Prior Close: $16.14 USD

Hertz operates vehicle rental businesses throughout the world under the Hertz, Dollar, and Thrifty brands. HTZ is Ranks Rank #2 (Buy) that sports an overall “A” VGM score. Hertz holds a price/sale ratio of 0.14, which marks a huge discount compared to its industry 0.66 average. Shares of HTZ are up 20% in 2019, which comes in above its 15.9% average. The firm’s adjusted current-quarter earnings are projected to skyrocket 152% from a loss of $0.19 per share in the year-ago period to earnings of $0.10 per share. On top of that, HTZ is projected to see its full-year fiscal 2019 EPS figure soar 700% from a loss in fiscal 2018 to positive earnings of $1.02 per share in 2019. The company’s bottom line is then expected jump 88% above our current-year estimate in 2020. Meanwhile, revenue is projected to pop 3.2% this year and 3.5% higher in the following year.

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Fly Leasing Limited (FLY) : Free Stock Analysis Report
 
Hertz Global Holdings, Inc (HTZ) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
Facebook, Inc. (FB) : Free Stock Analysis Report
 
Snap Inc. (SNAP) : Free Stock Analysis Report
 
Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report
 
Asure Software Inc (ASUR) : Free Stock Analysis Report
 
The Boeing Company (BA) : Free Stock Analysis Report
 
Airbus Group (EADSY) : Free Stock Analysis Report
 
Ford Motor Company (F) : Free Stock Analysis Report
 
Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
General Electric Company (GE) : Free Stock Analysis Report
 
Toray Industries Inc. (TRYIY) : Free Stock Analysis Report
 
Host Hotels & Resorts, Inc. (HST) : Free Stock Analysis Report
 
iQIYI, Inc. Sponsored ADR (IQ) : Free Stock Analysis Report
 
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